BILL NUMBER: AB 1229	CHAPTERED  09/27/99

	CHAPTER   503
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 27, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 2, 1999
	PASSED THE SENATE   AUGUST 30, 1999
	AMENDED IN SENATE   AUGUST 24, 1999
	AMENDED IN SENATE   AUGUST 18, 1999
	AMENDED IN SENATE   JUNE 14, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999

INTRODUCED BY   Committee on Agriculture (Cardoza (Chair), Florez,
Reyes, Thomson, and Wiggins)

                        FEBRUARY 26, 1999

   An act to amend Sections 10200, 10212, 10216, 10222, 10230, 10231,
10234, 10236, 10239, 10240, 10241, 10242, 10243, 10251, 10252,
10254, 10261, and 10276 of, and to add Sections 10224, 10231.5,
10235.5, 10260.5, and 10262.1 to, the Public Resources Code, relating
to agricultural lands, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1229, Committee on Agriculture.  Agricultural land
conservation:  districts.
   (1) Existing law, the Agricultural Land Stewardship Program Act of
1995, establishes a program for grants from the Department of
Conservation to local governments and nonprofit organizations,
subject to prescribed requirements and in accordance with prescribed
procedures, for the acquisition of agricultural conservation
easements, as defined, and for incidental costs, as specified.  The
act specifies that an "agricultural conservation easement" or
"easement" means an interest in land, less than fee simple, that
represents the right to prevent the development or improvements of
the land, as specified, for any purpose other than agricultural
production, and requires that an agricultural conservation easement
be granted by the owner of a fee simple interest in land to a local
government or nonprofit organization, for the program.  The act
defines an "applicant" to mean a city, county, or nonprofit
organization that applies for a grant to acquire an agricultural
easement.
   This bill would rename the program to the California Farmland
Conservancy Program, and require that an easement also be granted by
the owner of a fee simple interest in land to a resource conservation
district, or to a regional park or open-space district or regional
park or open-space authority that has the conservation of farmland
among its stated purposes, as prescribed by statute, or as expressed
in the district's or authority's locally adopted policies, for the
program.  The bill would revise the definition of "applicant," as
specified, and would add a definition of "resources conservation
district" for purposes of the act.  The bill would provide that, with
a specified exception, an easement may, at the request of the
landowner, establish provisions that are more restrictive than those
provided in the act.  The bill would prescribe various requirements
for the termination and repurchase of an easement, and the
distribution of moneys received in connection with the termination of
an easement.
   The bill would authorize the department to accept donations of
funds if the department is the designated beneficiary of the donation
and it agrees to use the funds for program purposes in a county
specified by the donor, and to establish a payment system for the
purchase of agricultural conservation easements that is mutually
satisfactory to the department and the seller of the easement, if
full payment is secured.  The bill would prescribe various other
related matters.
   (2) Existing law creates the Agricultural Land Stewardship Program
Fund, and authorizes the deposit of money into the fund from gifts,
donations, proceeds from the sale of general obligation bonds, funds
appropriated therefor by the Legislature, federal grants or loans, or
other sources, and makes those moneys available, upon appropriation
by the Legislature, for the implementation of the program.
   This bill would rename that fund to the California Farmland
Conservancy Fund, and would instead provide that moneys in the fund
may be expended, upon appropriation by the Legislature in the annual
Budget Act, for the purposes of the program, but would require that
moneys deposited into the fund from federal grants, and gifts and
donations that are designated and required by the doner to be used
exclusively for the purposes of the program, be continuously
appropriated to the department for expenditure for the purposes of
the program, thereby making an appropriation.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 10200 of the Public Resources Code is amended
to read:
   10200.  This division shall be known, and may be cited, as the
California Farmland Conservancy Program Act.  Any other references in
this division to the Agricultural Land Stewardship Program Act of
1995 shall hereafter mean the California Farmland Conservancy Program
Act.
  SEC. 1.5.  Section 10211 of the Public Resources Code is amended to
read:
   10211.  "Agricultural conservation easement" or "easement" means
an interest in land, less than fee simple, which represents the right
to prevent the development or improvement of the land, as specified
in Section 815.1 of the Civil Code, for any purpose other than
agricultural production.  The easement shall be granted for the
California Farmland Conservancy Program by the owner of a fee simple
interest in land to a local government, nonprofit organization,
resource conservation district, , or to a regional park or open-space
district or regional park or open-space authority that has the
conservation of farmland among its stated purposes, as prescribed by
statute, or as expressed in the entity's locally adopted policies,
for the California Farmland Conservancy Program.  It shall be granted
in perpetuity as the equivalent of covenants running with the land.

  SEC. 2.  Section 10212 of the Public Resources Code is amended to
read:
   10212.  "Applicant" means a city, county, nonprofit organization,
resource conservation district, , or to a regional park or open-space
district or regional park or open-space authority that has the
conservation of farmland among its stated purposes, as prescribed by
statute, or as expressed in the entity's locally adopted policies,
that applies for a grant to acquire an agricultural conservation
easement.
  SEC. 3.  Section 10216 of the Public Resources Code is amended to
read:
   10216.  "Fund" means the California Farmland Conservancy Program
Fund created pursuant to Section 10230.
  SEC. 4.  Section 10222 of the Public Resources Code is amended to
read:
   10222.  "Program" means the California Farmland Conservancy
Program established under this division.
  SEC. 5.  Section 10224 is added to the Public Resources Code, to
read:
   10224.  "Resource conservation district" means a resource
conservation district established pursuant to Division 9 (commencing
with Section 9000).
  SEC. 6.  Section 10230 of the Public Resources Code is amended to
read:
   10230.  (a) (1) The California Farmland Conservancy Program Fund
is hereby created.
   Except as provided in paragraph (2), the moneys in the fund shall,
upon appropriation by the Legislature in the annual Budget Act, be
used for the purposes of the program, which include the purchase of
agricultural conservation easements, land improvement and planning
grants, technical assistance provided by the department, technology
transfer activities of the department, and administrative costs
incurred by the department in administering the program.
   (2) Notwithstanding paragraph (1), moneys may be deposited into
the fund from federal grants, and gifts and donations that are
designated and required by the donor to be used exclusively for the
purposes of the program, and notwithstanding Section 13340 of the
Government Code, those moneys are hereby continuously appropriated to
the department for expenditure for the purposes of this program.
   (b) Not to exceed 10 percent of all grants made by the department
pursuant to this division may be made for land improvement purposes
and policy planning purposes.  Not less than 90 percent of funds
available for grants pursuant to this division shall be expended for
the acquisition of interests in land.
  SEC. 7.  Section 10231 of the Public Resources Code is amended to
read:
   10231.  Money available from the fund shall be utilized in
accordance with the expenditures and distribution authorized,
required, or otherwise provided in the program for the acquisition of
agricultural conservation easements.  This includes all direct costs
incidental to the acquisition of agricultural conservation
easements, including costs associated with a loss in property tax
revenues resulting from the acquisition of those agricultural
conservation easements.  Direct costs paid to the applicant shall not
exceed 10 percent of the value of the easements for which the costs
were incurred.
  SEC. 8.  Section 10231.5 is added to the Public Resources Code, to
read:
   10231.5.  The department may accept donations of funds if the
department is the designated beneficiary of the donation and it
agrees to use the funds for purposes of the program in a county
specified by the donor.  Any donation made to the department pursuant
to this section is subject to the requirements of Sections 11005 and
16302 of the Government Code.
  SEC. 9.  Section 10234 of the Public Resources Code is amended to
read:
   10234.  Every application for a grant for the acquisition of an
agricultural conservation easement shall be accompanied by a
resolution from the governing body of the local government in which
the proposed easement is located certifying both of the following:
   (a) The easement proposal meets the eligibility criteria set forth
in Section 10251.
   (b) The easement proposal has been approved by the appropriate
local governmental governing body.
  SEC. 10.  Section 10235.5 is added to the Public Resources Code, to
read:
   10235.5.  The department may establish a payment system for the
purchase of an agricultural conservation easement that is mutually
satisfactory to the department and the seller of the easement,
provided that full payment for the easement is secured.
  SEC. 11.  Section 10236 of the Public Resources Code is amended to
read:
   10236.  If the funds are used for the acquisition of an
agricultural conservation easement pursuant to a local transfer of
development rights program, upon the sale of the easement and its
attendant development rights, the entity that holds the easement
shall reimburse the fund by an amount equal to the fair market value
of the easement.
  SEC. 12.  Section 10239 of the Public Resources Code is amended to
read:
   10239.  The director shall disburse funds to applicants for the
acquisition of fee title to agricultural land from owners only if all
of the following conditions are met:
   (a) The applicant agrees, upon acquisition of the property, to
treat the property as encumbered by an agricultural conservation
easement subject to Section 10262.
   (b) The applicant sells the fee title subject to an agricultural
conservation easement to a private landowner within three years of
the acquisition of the fee title.
   (c) The applicant reimburses the fund by an amount equal to the
fair market value of the land less the value of the easement and
associated transaction costs within 30 days after the sale of the
restricted fee title.
  SEC. 13.  Section 10240 of the Public Resources Code is amended to
read:
   10240.  (a) The department shall adopt rules and regulations for
the implementation of this division, including the standards,
criteria, and requirements necessary for approval of local government
programs for acquiring agricultural conservation easements,
including the eligibility criteria provided in Section 10251.  The
department may examine alternative agreements for the purpose of
evaluating the substantive and fiscal benefits of proposals under
this program.
   (b) Rules or regulations adopted by the department pursuant to
this section shall be adopted in accordance with the rulemaking
provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code).
  SEC. 14.  Section 10241 of the Public Resources Code is amended to
read:
   10241.  The department shall adopt the criteria necessary for its
approval of grant applications from applicants for the acquisition of
agricultural conservation easements.
  SEC. 15.  Section 10242 of the Public Resources Code is amended to
read:
   10242.  The director shall review, and approve or disapprove,
grant applications from applicants for the acquisition of
agricultural conservation easements on agricultural land or the
acquisition of fee title to agricultural land pursuant to Section
10239.
  SEC. 16.  Section 10243 of the Public Resources Code is amended to
read:
   10243.  The department shall allocate available state funds to
applicants for the acquisition of agricultural conservation
easements.  However, no governmental agency shall condition the
issuance of an entitlement to use on a landowner's granting of a fee
interest or less than a fee interest in property pursuant to this
chapter.
  SEC. 17.  Section 10251 of the Public Resources Code is amended to
read:
   10251.  Agricultural conservation easements shall meet all of the
following eligibility criteria prior to review pursuant to the
selection criteria set forth in Section 10252:
   (a) The parcel proposed for conservation is expected to continue
to be used for, and is large enough to sustain, commercial
agricultural production.  The land is also in an area that possesses
the necessary market, infrastructure, and agricultural support
services, and the surrounding parcel sizes and land uses will support
long-term commercial agricultural production.
   (b) The applicable city or county has a general plan that
demonstrates a long-term commitment to agricultural land
conservation.  This commitment shall be reflected in the goals,
objectives, policies, and implementation measures of the plan, as
they relate to the area of the county or city where the easement
acquisition is proposed.
   (c) The grant proposal is consistent with the city or county
general plan, and the governing body of the city or county, by
resolution, approves the easement proposal.  For land within a city's
sphere of influence, both the city and the county in which the city
is located shall, by passage of a resolution, approve the grant
proposal and the easement proposal.
   (d) Without conservation, the land proposed for protection is
likely to be converted to nonagricultural use in the foreseeable
future.
  SEC. 18.  Section 10252 of the Public Resources Code is amended to
read:
   10252.  If the department determines that the proposed
agricultural conservation easement meets the eligibility criteria set
forth in Section 10251, the proposal shall be reviewed based upon
the extent to which it satisfies the following selection criteria:
   (a) The quality of the agricultural land, based on land
capability, farmland mapping and monitoring program definitions,
productivity indices, and other soil, climate, and vegetative
factors.
   (b) The proposal meets multiple natural resource conservation
objectives, including, but not limited to, wetland protection,
wildlife habitat conservation, and scenic open-space preservation.
   (c) The city or county demonstrates a long-term commitment to
agricultural land conservation as demonstrated by the following:
   (1) The general plan and related land use policies of the city or
county.
   (2) Policies of the local agency formation commission.
   (3) California Environmental Quality Act policies and procedures.

   (4) The existence of active local agricultural land conservancies
or trusts.
   (5) The use of an effective right-to-farm ordinance.
   (6) Applied strategies for the economic support and enhancement of
agricultural enterprise, including water policies, public education,
marketing support, and consumer and recreational incentives.
   (7) Other relevant policies and programs.
   (d) If the land is in a county that participates in the Williamson
Act (Chapter 7 (commencing with Section 51200) of Part 1 of Division
1 of Title 5 of the Government Code), the land proposed for
protection is within a county or city designated agricultural
preserve.
   (e) The land proposed for conservation is within two miles outside
of the exterior boundary of the sphere of influence of a city as
established by the local agency formation commission.
   (f) The applicant demonstrates fiscal and technical capability to
effectively carry out the proposal.  Technical capability may be
demonstrated by agricultural land conservation expertise on the
governing board or staff of the applicant, or through partnership
with an organization that has that expertise.
   (g) The proposal demonstrates a coordinated approach among
affected landowners, local governments, and nonprofit organizations.
If other entities are affected, there is written support from those
entities for the proposal and a willingness to cooperate.  The
support of neighboring landowners who are not involved in the
proposal shall be considered.
   (h) The conservation of the land supports long-term private
stewardship and continued agricultural production in the region.
   (i) The proposal demonstrates an innovative approach to
agricultural land conservation with a potential for wide application
in the state.
   (j) The amount of matching funds and in-kind services contributed
by local governments.
   (k) The price of the proposed easement purchase is cost-effective
in comparison to the actual easement value.
   (l) Other relevant considerations established by the director.
  SEC. 19.  Section 10254 of the Public Resources Code is amended to
read:
   10254.  Before an application for an agricultural conservation
easement is approved by the department pursuant to the program, the
entity that is applying for the easement shall provide public notice
to parties reasonably likely to be interested in the property,
including the county and city in which the property is located,
conservation, agricultural, and development organizations, adjacent
property owners, and the general public.  Written notice shall be
provided to adjacent landowners as indicated in the county tax rolls
not less than 30 days prior to the expected date of the approval of
the local government required pursuant to subdivision (b) of Section
10234.  The notice to the county and city shall be provided not less
than 30 days before the entity applies for the grant to acquire an
agricultural conservation easement.
  SEC. 20.  Section 10260.5 is added to the Public Resources Code, to
read:
   10260.5.  For purposes of this division, an agricultural easement
shall be recorded in the county recorder's office in each county in
which the real property affected is located.  Once recorded, the
easement shall attach to the real property for an indefinite period,
unless the agricultural conservation easement is subsequently
terminated, as provided in this division.
  SEC. 21.  Section 10261 of the Public Resources Code is amended to
read:
   10261.  (a) Whenever any entity exercises the power of eminent
domain to acquire land subject to an agricultural conservation
easement under this program, the condemnor shall pay just
compensation to the owner of the land in fee and to the owner of the
easement as follows:
   (1) The owner of the land in fee shall be paid the full value that
would have been payable to the owner but for the existence of the
easement less the value of the easement at the time of condemnation.

   (2) The program, and any other contributing parties if so provided
in the easement, shall be paid the value of the easement at the time
of condemnation.
   (b) The director may provide, by regulation, or, pursuant to the
terms of the easement, that in the case of acquisition of the
easement by a federal agency, that the agency shall agree to the
amount of compensation paid for the easement that is determined
pursuant to subdivision (a), or pay the current fair market value of
the land subject to an agricultural easement.  The director shall
distribute the proceeds of a land sale that is made in accordance
with the conditions set forth in subdivision (a).
  SEC. 22.  Section 10262.1 is added to the Public Resources Code, to
read:
   10262.1.  Except as provided in Section 10238, an easement may, at
the request of the landowner, establish provisions that are more
restrictive than those restrictions prescribed in this division.
  SEC. 23.  Section 10276 of the Public Resources Code is amended to
read:
   10276.  (a) If the termination of the agricultural conservation
easement is approved pursuant to this division or pursuant to a
judicial proceeding in a court of competent jurisdiction, the
landowner shall repurchase the easement by paying to the fund and to
any other contributing parties, if so provided in the easement, the
difference, at that time, between the fair market value and the
restricted value.  That difference shall be determined by an
appraisal approved by the state and conducted at the landowner's
expense.
   (b) If the landowner fails to complete the termination process by
repurchasing the agricultural conservation easement within one year
from the date of the department's approval of the termination of the
easement, the termination approval shall lapse and the landowner
shall wait at least one year before reapplying to terminate the
easement.
   (c) Money received from the repurchase of agricultural
conservation easements shall be deposited in the fund and shall be
available, upon appropriation, for the purposes set forth in this
division, except as provided in subdivision (d).
   (d) Where an easement was originally purchased with moneys from
sources other than the program, the easement may require that moneys
received from the repurchase of the easement be divided
proportionally between the fund and any other funding source in
amounts that are proportional to the original contribution made by
each party that contributed to that purchase.  If provided in an
easement, a nonprofit organization that contributed to the purchase
of an easement may recoup the actual amount of its contribution, plus
an amount not exceeding 3 percent of the total amount of the
contribution for administrative costs.
